Buy Fact, target price Rs 1030: IIFL Securities

IIFL Securities has issued a buy recommendation for Fertilizers and Chemicals Travancore Limited (FACT) with a target price of Rs 1030. This represents a premium of approximately 3% over the current market price of Rs 1000.5. The brokerage firm's positive outlook on FACT is driven by the company's strong fundamentals, including its dominant position in the fertilizer market and its ongoing expansion plans.

About Fact:

Titan Company Limited, established in 1984, is an Indian luxury goods manufacturer and retailer. It is a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). Headquartered in Bengaluru, Karnataka, Titan primarily operates in the watch and jewelry segments. The company's watch brands include Titan, Fastrack, and Sonata, while its jewelry brands include Tanishq, Zoya, and Mia. Titan also has a presence in the eyewear, fragrances, and accessories markets. With over 1,800 retail stores across India and an international presence in 32 countries, Titan is one of the largest lifestyle companies in the country.

52 Week Price Trend:

Fact (NSE: FACT) is currently trading at Rs 1000.5, close to the middle of its 52-week range of Rs 483.45 and Rs 1187. While the stock has fallen significantly from its 52-week high, it has also recovered from its lows. Investors should note that FACT's stock price has been volatile in the past and it is important to conduct thorough research and due diligence before making any investment decisions.

Stratzy's MOST Analysis:

FACT's exceptional performance in Stratzy's MOST framework, earning it an AAA rating, reflects its strong fundamentals across all four pillars. The company's sound management practices, positive outlook, high safety standards, and favorable industry trend collectively indicate low fundamental risks and suggest FACT is a stable investment choice.

Company's Fundamentals:

Fact (NSE: FACT) has a high Stock PE (Price to Earnings) ratio of 566.78, indicating that investors are willing to pay a premium for its earnings. The company's PB Ratio (Price to Book Value) of 46.05 suggests that its market value is substantially higher than its book value. Despite the high valuations, FACT has a low Dividend Yield of 0.1%, which implies that investors may not be primarily motivated by dividend income from the stock.

Fundamental and Technical information provided in this blog were last updated on 09 Jan, 2025

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